Letter of Participation
Letter of Participation
1. Group Designation and Term: The undersigned Member recognizes and designates New Source Ambulatory, LLC (“New Source”) as its primary Group Purchasing Organization. New Source will provide purchasing related services to Member, including but not limited to: negotiation and management of supplier agreements on behalf of Member, execution of applications and other required documents to allow the Member to purchase products, services, and supplies under the supplier agreements, conducting sales and transaction data collection and reporting as appropriate to the performance of such services. Member authorizes New Source to perform those acts as necessary for its provision of services for and on behalf of Member. This Letter of Participation is valid for three (3) years and will automatically renew for successive one (1) year periods unless otherwise terminated by either party with ninety (90) days’ notice to the other.
2. Administrative Fees: New Source may be paid a fee not to exceed 3% of total sales by each member from vendors with whom it has negotiated contract pricing. New Source will make available at least annually the amount of such fees paid to New Source in respect of purchases made by Member.
